Kentucky car insurance laws


In 2018, Kentucky saw 158,171 car accidents that resulted in 670 deaths. The Kentucky Transportation Center data showed that collisions declined by 2 percent in 2018, but drivers are still at high risk from car accidents.

Kentucky drivers are required to have car insurance. This provides legal and financial protection in the case of an accident. To ensure adequate protection for their vehicle and themselves, it is crucial that drivers fully understand Kentucky’s car insurance laws.

Kentucky has laws regarding car insurance

Kentucky drivers must comply with several state insurance laws. These laws are intended to protect drivers and limit their liability. These are the top Kentucky car insurance laws you should be aware of.

  • All drivers must have minimum coverage insurance. All drivers who own a Kentucky-registered vehicle are required to have car insurance. No matter how many times they drive, drivers must comply with the minimum coverage requirements. An insurance company licensed in Kentucky must write insurance policies.
  • Drivers must have proof of insurance. Kentucky insurance law mandates that drivers always have proof proof of insurance in their car. Drivers must show proof of insurance at all times.
  • Single limit policies allowed: Drivers in Kentucky can purchase a single-limit policy that includes $60,000 of financial responsibility.
  • Military members on active duty can use out-of state insurance. Active military personnel currently residing in Kentucky can continue to have car insurance that was issued in another State, so long as they are registered in Kentucky.
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Kentucky offers liability insurance

To legally drive a vehicle in Kentucky, drivers must have minimum Kentucky car insurance. Kentucky’s minimum auto insurance requirements include:

  • $25,000 bodily injury liability coverage per individual
  • $50,000 bodily injury liability coverage per accident
  • $25,000 per accident in property damage liability coverage

Kentucky drivers who choose to settle for minimal coverage insurance will pay the lowest premium. Most insurance companies recommend that drivers buy more coverage than is necessary. Car accidents can be costly and the minimum coverage may not provide enough protection to cover all financial obligations.

Let’s say, for example, that you cause an accident and that the other driver and two passengers suffer serious injuries. The medical bills for all three people totalled $150,000. You would have to pay the $100,000 remaining out-of-pocket because your minimum coverage insurance does not cover $50,000 of liability.

Liability-only coverage does NOT include protection for your vehicle. Even if your car is totaled, liability-only coverage does not cover your vehicle if you cause an accident.

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Is Kentucky an exception state?

Kentucky is a state that has no fault. Your insurance company is responsible for paying your medical bills after an accident covered by the law. In a fault state the insurance company of the at-fault driver compensates the other driver for their losses.

Kentucky’s no fault laws are however unique. Kentucky drivers have the choice to either purchase no-fault insurance, or decline coverage. Drivers who choose no-fault insurance must have at least $10,000 Personal Injury Protection (PIP), which covers their medical expenses as well as lost wages.

Driving without insurance in Kentucky can lead to severe penalties

Kentucky law makes it illegal to drive without insurance. Drivers caught driving without insurance will have their registration suspended. Drivers may be subject to a $500-$1,000 fine and up to 90 days imprisonment.

Kentucky offers additional auto insurance options

The coverage offered by liability-only insurance is limited. Many Kentucky drivers also purchase endorsement insurance policies to increase their protection. These optional coverages can prove to be very beneficial for drivers in Kentucky.

  • Collision Insurance: collision insurance will cover the cost of repairing your vehicle after an accident. The average collision insurance premium in Kentucky is $300/year for full coverage.
  • Comprehensive Insurance: Comprehensive will cover your vehicle’s damage after an accident, such as fire, water damage, or vandalism. Kentucky’s average comprehensive policy is $157.
  • Uninsured/underinsured motorist coverage: Uninsured/underinsured motorist coverage provides financial protection if you end up getting into an accident with someone who does not have insurance at all or who does not have enough insurance to pay for your losses.
  • Gap insurance: In the event that your vehicle is totaled in an accident covered by insurance, gap insurance will cover the difference between its value and the loan balance.
  • Roadside Assistance: Basic roadside assistance includes towing, fuel delivery, lockout and battery replacement, as well as basic vehicle repairs. This coverage is offered by most insurance companies for an additional fee.
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Questions frequently asked

Which Kentucky car insurance company is best?

Car insurance is a personal matter. Every driver will have a different experience with the best Kentucky car insurance company. Drivers may be looking for the most comprehensive coverage, while others want the best rates and customer service. To find the right match, drivers should compare insurance providers and shop around.

What is the cost of car insurance in Kentucky?

Kentucky’s average cost for car insurance is higher than the national average. The average full coverage policy for car insurance in Kentucky costs $2,201 annually, while the average minimum coverage policy costs $761 annually. The average full coverage insurance rate in the United States is $1,738 annually.

Is Kentucky required to have SR-22 insurance

Kentucky drivers who are charged with DUI/DWI and lose their driver’s license do not have to purchase SR-22, which is a certificate proving financial responsibility. A negative driving record can cause your car insurance rates to rise.

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